Latest news and stories about cost of living in government in Portugal for expats and residents.
If you are reading this article in an app, open the quiz here. From 10 April 2026 the Deposit and Return System (SDR) comes into force; it aims to promote the circular economy by recovering single‑use beverage packaging in bottles and aluminium or steel cans...

Pensioners will see slightly higher net payments from this month after routine inflation adjustments and new IRS withholding tables were applied; simulations show, for example, a gross €1,000 pension could yield roughly €27 more net. The change reflects updated income‑tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) withholding rates rather than a direct benefit increase. Pension recipients should check payslips to confirm new net amounts.
The IRS withholding tables are government-published schedules used by employers, pension payers and other payers to calculate how much personal income tax (personal income tax (Imposto sobre o Rendimento das Pessoas Singulares) — IRS) must be deducted from each pay period. They take into account gross pay, pay frequency, marital status and dependents; updates (usually published annually or when the budget changes) affect your monthly take-home pay and are reconciled with your annual tax return (Modelo 3).

The Finance Minister will be at next week's annual meeting of the World Economic Forum in Davos, and will use the presence of policymakers and investors to 'sell' the progress the national economy has made in recent years. In remarks to ECO, Joaquim Miranda Sarmento highlights this year's event theme, ...

Portugal faces a mixed outcome from the EU–Mercosur trade agreement. Export-oriented sectors such as wine, olive oil and cheese see expanded market access to Argentina, Brazil, Paraguay and Uruguay as growth opportunities, while domestic meat and rice producers fear increased competition, downward price pressure and quota-driven market disruption. The deal thus creates winners and losers within Portugal’s agricultural and food industries, highlighting the need for safeguards, support measures and sectoral adaptation strategies.
Update: The trade agreement between the European Union and Mercosur is due to be signed this Saturday. The impending signature has intensified debate in Portugal: wine, olive oil and cheese sectors are positioning to capture growth in the four South American markets, while meat and rice producers renew warnings about heightened competition, downward price pressure and quota effects. Stakeholders are pressing for concrete safeguards, transitional support and clear implementation timetables to mitigate adjustment costs and protect sensitive domestic producers.

DBRS has kept Portugal's sovereign debt rating unchanged but removed any prospect of an upgrade, signalling it does not expect improvement in the near term.
A brief look at what Portuguese people expect from the upcoming presidential election, covering public priorities, concerns and hopes that could shape voter sentiment.

Report on the measure of applying 0% VAT and its purported lack of effect on the State Budget (OE), and how food access and affordability differ across a country with growing economic divisions.

Diário de Notícias and Correio da Manhã report the Portuguese government describes the long‑running EU–Mercosur agreement as an economic opportunity, while domestic producers and farming groups urge Brussels to proceed cautiously to protect local sectors. The coverage highlights continuing divisions over market access, environmental and regulatory safeguards after 25 years of negotiation. Exporters and agricultural businesses should monitor EU negotiations and any safeguards that may affect competitive conditions.

Mercosur is the South American trade bloc (Southern Common Market) whose main founding members are Argentina, Brazil, Paraguay and Uruguay. An EU–Mercosur trade agreement — which the story says may be approved and signed soon — would reduce tariffs and open markets on both sides, affecting agricultural and industrial trade flows and therefore prices and business opportunities relevant to residents and companies in Portugal.

Mercosur is the South American trade bloc (Southern Common Market) whose main founding members are Argentina, Brazil, Paraguay and Uruguay. An EU–Mercosur trade agreement — which the story says may be approved and signed soon — would reduce tariffs and open markets on both sides, affecting agricultural and industrial trade flows and therefore prices and business opportunities relevant to residents and companies in Portugal.

I'll vote for the AI President. A candidate able to foresee needs before they become crises, to ask why wages stagnate while GDP grows, and to prevent four‑hour queues in public services.

Rising costs of medicines are a primary barrier to healthcare for the most disadvantaged, forcing some patients to cancel appointments and tests for lack of funds. This creates widening inequalities in health outcomes and places additional strain on services; addressing the problem requires policy responses such as targeted subsidies, improved coverage, price regulation and better access to affordable medicines.

In 2025, 14.26% of people reported not seeking healthcare when needed, reflecting significant access barriers in Portugal. More than half of the poorest households cannot afford all prescribed medication, while over 50% of initial consultations in the National Health Service (SNS) occur outside the appropriate timeframe. These findings point to intersecting problems of affordability and timeliness that disproportionately affect low-income groups and signal the need for targeted policy responses to improve medication coverage, reduce waiting times and strengthen primary-care access.

Galp customers have received large, delayed bills—some reported above €500—after months without regular billing; the Energy Services Regulatory Authority has registered around 80 complaints and reminds the company it must offer payment plans and may be required to compensate affected consumers. The disruption stems from billing interruptions dating back to September and the regulator is pressuring remedies. Expats with Galp accounts should review recent invoices, request instalment plans from the company and register complaints with the regulator if needed; keep proof of bills and communications.
Galp is Portugal’s integrated energy company operating in fuel, natural gas, electricity retail, refining and upstream activities, and it supplies households and businesses across the country. For expats, issues at Galp—such as recent billing disruptions—can mean unexpected large utility bills or service problems, so check your account, contact the supplier and keep billing records.
The Energy Services Regulatory Authority (Entidade Reguladora dos Serviços Energéticos or ERSE) is Portugal’s regulator for electricity, gas and fuel markets, responsible for licensing, tariffs and consumer protection. ERSE handles consumer complaints (it received about 80 complaints in the recent Galp case), can investigate billing disputes and impose sanctions, so it’s the authority to contact for unresolved energy issues.

New data from Portugal's Survey on Living Conditions and Income show one region has the country's highest incidence of monetary poverty, with 17.9% of residents living below the poverty threshold. Analysts and local actors attribute the rise to a combination of state neglect, insufficient social-protection measures, the growth of precarious immigration and unstable work, and wider cost-of-living pressures — factors that together depress incomes and worsen social indicators. The figures point to a need for targeted regional policies on social security, employment quality and integration to reverse the trend.

Presidential candidate André Pestana said Portugal should prioritise domestic social and environmental needs rather than increased defence spending, declaring he does not want “a single euro more for NATO”. He argues the fight should be against low wages and pensions, environmental degradation and the deterioration of public services, and proposes that funds currently transferred to private health providers be redirected into the National Health Service (SNS), claiming a large share of the state health budget is going to private companies.

Nuno Leal, co‑CEO of Doutor Finanças, says the tax measures in the government’s housing plan — due to be debated in Parliament on Friday — should help increase supply in the market. He concedes the package tends to favour property owners and landlords but considers it “relatively balanced”, noting the measures are centred on those who hold property while aiming to ease supply constraints. The assessment focuses on likely effects on rental supply and owner incentives rather than specific legislative detail.

Economist Vera Gouveia Barros argues that the most effective element of the Construir Portugal programme is tax relief on rentals, citing an ‘almost mechanical effect’ from a proposed 10% autonomous IRS rate for rents up to €2,300. She suggests this tax cut will directly influence rent levels and landlord behaviour, with likely quick transmission into the market. However, the package omits a dedicated room‑rental option — a gap that could limit lower‑cost housing supply and options for students, workers and expats. Barros’ analysis implies policymakers should pair fiscal incentives with targeted measures for small‑unit and shared accommodation and monitor market adjustments to avoid unintended rent inflation or supply imbalances.

The Government's housing plan, due for debate and a vote on Friday, is expected to pass after Chega signals it will abstain. Although Chega's final voting decision is not yet locked in, the party led by André Ventura intends to abstain so it can later table and negotiate amendments during the committee stage. The abstention effectively allows the bill to advance despite the Government lacking a clear majority, with potential implications for property costs, local housing policy and market regulation as the measure moves to detailed scrutiny.

During a heated parliamentary debate, Prime Minister Luís Montenegro warned that moderation in residential property prices — for both buying and renting — is inevitable after what he described as recent 'risky measures.' He framed the policy changes as drivers of a market correction, signalling likely cooling pressures on affordability and activity in Portugal’s housing market and prompting renewed scrutiny of government housing and economic policy.

JP Morgan analysts Aditya Chordia and Matteo Mamprin assign a roughly 50% probability that Moody’s will upgrade Portugal’s sovereign credit rating at its scheduled review in May, putting an upgrade within about four and a half months. The bank’s view reflects an assessment that Portugal’s improving economic fundamentals, fiscal position and lower borrowing costs have materially strengthened its credit profile, reducing downside risks. An upgrade as soon as May would tighten financing spreads, reinforce investor confidence and mark another step in Portugal’s long post‑crisis recovery; market participants should monitor sovereign metrics and rating signals in the run‑up to the review.

Real-time analytical coverage of financial markets and economic developments on 6 January, including market moves, key data releases and macro indicators. Commentary focuses on consumer confidence and cost pressures, investor sentiment and flows, implications for investors and expat households, and the significance of today’s indicators for policy and markets.

Humberto Correia frames his presidential bid around his personal experience of poverty, presenting himself as a candidate who understands the everyday suffering of the Portuguese. He singles out the housing sector as a ‚disaster‘ and signals that addressing property, cost-of-living and related social stresses will be central to his campaign, positioning his lived experience as the basis for policy credibility.
A wave of policy and market changes due to take effect in 2026 will raise the cost of housing for Portuguese households and alter incentives across the sector. Measures affecting rents, mortgage lending rules and tax treatment of construction and property are set to impact owners, tenants and prospective buyers, with knock-on effects for affordability, market dynamics and the state budget. The package will reframe public incentives and regulatory risk for investors and households alike, requiring households and professionals to reassess financing, renting and development decisions.

A rise in the guaranteed national minimum wage to €920 gross per month, together with higher employer Social Security contributions, will raise labour costs by about €866 a year for each worker on the minimum wage. The increase reflects both direct pay and associated employer charges and will squeeze firm margins — particularly in low-margin sectors — with potential knock‑on effects on prices, hiring decisions and informal employment. Policymakers and businesses will need to weigh targeted support, phased implementation or productivity measures to offset the impact on competitiveness and employment.

From 2026, new cars will be fitted with additional safety equipment mandated by regulators to reduce road accidents. The measures should lower collisions and casualties and could bring long‑term savings in insurance and healthcare, but they will increase manufacturers’ costs and are likely to push up new‑car prices. Policymakers will need to balance public‑safety benefits against affordability, using tools such as subsidies, tax incentives, phased implementation or targeted support to lessen the impact on lower‑income buyers.


Portugal Resident •